BJ's Wholesale Club Q2 Highlights: Earnings Beat, Traffic Gains, Merchandise Margin Rate Pressure & More - BJ's Wholesale Club (NYSE:BJ)

BJ's Wholesale Club Holdings Inc BJ reported second-quarter FY22 revenue growth of 22.2% year-on-year to $5.10 billion, beating the consensus of $4.61 billion.
Total comparable club sales increased by 19.8%. Comparable club sales, excluding gasoline sales, increased by 7.6%.
Membership fee income increased by 11.3% to $98.8 million.
Gross profit rose 12.6% Y/Y to $860 million with a margin of 16.9%.
Merchandise gross margin rate, which excludes gasoline sales and membership fee income, decreased by 50 basis points, impacted by higher freight costs, investments in inflationary categories, and markdowns in general merchandise inventory.
The operating margin was 4%, and operating income for the quarter rose 23.9% to $202.9 million.
Adjusted EBITDA of $273.7 million increased 24.3% Y/Y.
Adjusted EPS of $1.06 beat the analyst consensus of $0.78.
"Our strong results in the second quarter were led by gains in traffic and market share as we continued to deliver tremendous value across virtually every aspect of our business," said CEO Bob Eddy.
BJ's Wholesale Club held $163.7 million in cash and equivalents as of July 30, 2022.
Cash provided by operating activities for the six months totaled $443.1 million.
Outlook: BJ's Wholesale raised its FY22 EPS guidance to $3.50 - $3.60 from the previous estimate of about $3.25.
BJ expects FY22 comparable club sales growth, excluding the impact of gasoline sales, to be in the 4%-5% range, up from the original guidance of a low single digit.
Price Action: BJ shares traded higher by 8.48% at $74.96 on the last check Thursday.
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